EL7.AI
StocksMedium•2 July 2026•
1 min read

Nasdaq 100 Drops as SanDisk Leads Semiconductor Sector Sell-Off

Key Facts

1The Nasdaq 100 index fell nearly 2% as technology stocks declined.
2SanDisk shares plunged more than 13%, leading losses in the semiconductor sector.
3Investors rotated into old economy sectors like defense and oil & gas amid profit-taking.

Following weeks of robust gains in the technology sector, U.S. markets experienced a sharp correction that saw the Nasdaq 100 index fall by nearly 2%. According to reports, SanDisk shares led the decline in the semiconductor space with a plunge of more than 13%, prompting investors to rotate out of growth stocks and into old economy sectors such as defense and oil & gas amid widespread profit-taking.

This downturn comes as traders monitor the performance of other tech giants, with market data showing mixed results; while the chip sector struggled, TSLA shares stood at $396.65 at the close of July 2, 2026, and INTC was priced at $127.02 (July 1, 2026). This retreat aligns with historical trends where the semiconductor sector shows heightened sensitivity to global demand forecasts, particularly during sell-offs affecting major names like Intel.

Looking ahead, investors are watching technical support levels for the Nasdaq 100 after the 2% drop, with a specific eye on TSLA which hit a recent low of $395 (close of July 2, 2026). On the economic front, the market is awaiting the release of China's Manufacturing PMI on June 30, which could provide critical signals regarding global demand for electronics and semiconductors.